Which Companies Buy Houses For Cash?

Written by Banks Editorial Team
3 min. read
Written by Banks Editorial Team
3 min. read

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Long gone are the days of listing your home on the market to sell it. While this is still a popular method, you also have the option to sell your home to a company for cash. But is this method ideal, or should you go the traditional route? It depends on the type of cash buyer you’re considering.

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In this guide, you’ll learn more about each option to make an informed decision. 

Types Of Cash Home Buyers

There are several types of cash home buyers to choose from, including: 

  • House flippers
  • Buy-and-hold investors
  • Trade-in companies 
  • iBuyers, like Offerpad

House Flippers

House flippers find homes that are not in the best condition and make rock-bottom cash offers to homeowners. On average, it takes a house flipper between six months and a year to renovate and sell each home. But the wait is often well worth it since these homes tend to sell for far more than the house flipper invested in acquiring the property and making much-needed upgrades. 

Buy-And-Hold Investors

Some investors purchase properties for cash with no intent to sell them off. Instead, the homes are converted to rental properties once any necessary repairs and upgrades are completed. Be mindful that the investment company could opt to secure financing. In that case, the closing time could be far longer than what you’d get with a cash transaction. 

Trade-In Companies

If you’re looking to sell your home fast to close on a new property, a trade-in company could be appealing to you. They offer homeowners cash to buy a new home that’s equivalent to the market value of their current property. Meanwhile, they also list the house and keep a percentage of the earnings once it is sold. 

iBuyers

These companies operate in several markets nationwide and focus on homes that are in good condition and require minimal repairs and upgrades before they can hit the market. Ideally, iBuyers want to list the homes they buy relatively quickly to turn a profit. 

Sell or Buy a House with Offerpad

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Learn how to buy your house with Offerpad to get up to a $1,000 reward towards your closing costs and real estate local expertise.

Cash Home Buyers FAQs

Here are some frequently asked questions regarding cash home buyers. 

Are Cash House Offers Legit?

Yes, several reputable companies buy homes for cash. However, you could find that the offer you receive is relatively low, so it’s best to explore multiple options and request cash offers from more than one potential buyer before making a decision. 

How Much Will A Cash Home Buyer Pay For My House?

In most instances, you’ll get a cash offer for around 70 percent (or lower) of your home’s projected value after renovations are complete. 

What Are Closing Costs On A Cash Home Sale?

You’ll avoid paying real estate commissions by selling your home for cash. However, many charge a service fee, and you’ll also be on the hook for all the other closing costs you’d pay with a traditional real estate transaction. 

Is It Better To Sell Your House To A Cash Buyer Or Use A Real Estate Agent?

It depends on your personal circumstances. For example, if you need to sell your home fast, a cash buyer could be better. But if you’d like to test the market to get more for your property, it may be more sensible to use a real estate agent.

Is It A Good Idea To Sell Your House To A Cash Home Buyer?

Selling your house to a cash home buyer may be a good idea if: 

  • You need to sell your home fast. 
  • You’re relocating soon and already have a move-out date. 
  • You can’t close on your new home until your current property is sold and risk the deal falling through. 
  • You’d prefer not to go through the hassle of preparing your home for the market and welcoming strangers for walk-throughs. 

Fortunately, Offerpad is a reputable company that can lend a helping hand, regardless of your route. You can get a competitive cash offer in just 24 hours or list your home with confidence knowing that a backup offer is waiting just in case.

Here’s an overview of how each Offerpad option works

  1. Offerpad Express: Offerpad Express is perfect for those who want to sell their current home fast and move into their new home. You can sell directly to Offerpad for cash without listing your home on the market, simplifying selling a house and getting the freedom to select a closing day that works for you. Plus, this service includes a complimentary three-day extended stay in your home following closing and local move.  
  2. Offerpad Flex: Offerpad Flex is for those who want to maximize the value of their home but need help in marketing and preparing it for prospective buyers. It’s also a good fit if you live on more than one acre and cannot sell your home to Offerpad for cash. Plus, you’ll get dedicated support from an Offerpad agent that will assist you in buying your next home. You’ll also get the option of being awarded a closing cost credit of up to $1,000 if you decide to buy your next home from Offerpad.

Get your free, no-obligation cash offer today by completing the online form. It only takes a few minutes and can provide valuable insight into which option is best for your unique situation.

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